BIRCHWOOD CONSOLIDATED PTY LTD (ACN 119 162 211) (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) and THE OWNERS OF EQUUS STRATA PLAN 62962

The case involves a dispute between Birchwood Consolidated Pty Ltd (Receivers and Managers Appointed) (in Liquidation) and the Owners of Equus Strata Plan 62962. The primary issue at hand was the validity of a by-law passed by the Owners Corporation, which required the conversion of a lot into common property and its subsequent transfer out of the scheme, as well as the amalgamation of the lot with adjoining land. The dispute centred on whether this by-law was consistent with the special conditions of sale and the provisions of the Strata Titles Act 1985 (WA). Additionally, the validity of an annual general meeting held on short notice, the grant of a proxy under a sale contract, and the resolution passed at the annual general meeting were also contested.

The court was tasked with determining the consistency of the by-law with the special conditions of sale and the statutory provisions. It had to assess whether the by-law adhered to the legal framework governing strata titles. Furthermore, the court examined the procedural aspects of the annual general meeting, including the validity of the short notice and the grant of proxy, and the legality of the resolution passed. The court also needed to consider the broader implications of the by-law on the rights of the lot owners and the Owners Corporation.

The court ruled that the by-law was consistent with the special conditions of sale and the provisions of the Strata Titles Act 1985 (WA). It found that the annual general meeting was valid, despite being held on short notice, and that the grant of proxy under the sale contract was legitimate. Consequently, the resolution passed at the annual general meeting was deemed valid. The court dismissed the applications in CC 1728 of 2016 and CC 1057 of 2017, while the application in CC 1056 of 2017 was successful.

The final orders of the court were to dismiss the applications in CC 1728 of 2016 and CC 1057 of 2017, and to declare the application in CC 1056 of 2017 successful. This decision upheld the validity of the by-law and the resolution passed at the annual general meeting, affirming the rights and actions of the Owners Corporation.